Required information Use the following information for the Exercises below. (Algo) (The following information applies to the questions displayed below.] Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 27,397 77,815 98,836 8,646 251,654 $ 464,348 $ 31,863 57,163 74,056 8,574 229,444 $ 400,300 $ 34, 846 45,395 49,322 3,745 211,392 $ 343,990 $ 113,310 85,551 162,500 102,987 $ 464,348 $ 66,974 91,148 163,500 78,678 $ 46, 303 73,722 163,500 60,375 $ 343,900 $ 400, 300 es For both the current year and one year ago, compute the following ratios: Exercise 13-7 (Algo) Analyzing liquidity LO P3 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three-year period? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the current ratio for each of the three years. Current Ratio Denominator: 1 = Numerator: Accounts receivable = = Current Year: 1 Year Ago: 2 Years Ago: Current Ratio Current ratio 0 to 1 0 to 1 0 to 1 = ! Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current Year 1 Year Ago 2 Years Ago At December 31 Assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Accounts payable Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity $ 27,397 77,815 98,836 8,646 251,654 $ 464,348 $ 31,063 57,163 74,056 8,574 229,444 $ 400, 300 $ 34,046 45,395 49,322 3,745 211,392 $ 343,900 $ 113,310 85,551 162,500 102,987 $ 464, 348 $ 66,974 91,148 163,500 78,678 $ 400,300 $ 46,303 73,722 163,500 60,375 $ 343,900 For both the current year and one year ago, compute the following ratios: Exercise 13-7 (Algo) Analyzing liquidity LO P3 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three-year period? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Compute the acid-test ratio for each of the three years. Acid-test ratio 1 Denominator: Numerator: + Short-term investments + = Acid-Tes Acid-tes 0 + / Current Year: Year Ago: 2 Years Ago: + 1 0
